Have Immunovant Insiders Been Selling Stock?

Anyone interested in Immunovant, Inc. (NASDAQ:IMVT) should probably be aware that the CEO & Director, Peter Salzmann, recently divested US$425k worth of shares in the company, at an average price of US$25.45 each. However, the silver lining is that the sale only reduced their total holding by 3.5%, so we're hesitant to read anything much into it, on its own.

Check out our latest analysis for Immunovant

The Last 12 Months Of Insider Transactions At Immunovant

In fact, the recent sale by CEO & Director Peter Salzmann was not their only sale of Immunovant shares this year. Earlier in the year, they fetched US$29.94 per share in a -US$990k sale. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$26.87. So it is hard to draw any strong conclusion from it.

Insiders in Immunovant didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like Immunovant better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Immunovant insiders own about US$35m worth of shares. That equates to 0.9% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Immunovant Insider Transactions Indicate?

Insiders haven't bought Immunovant stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 3 warning signs (1 is a bit unpleasant!) that you ought to be aware of before buying any shares in Immunovant.

But note: Immunovant may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.